Golden Tag Announces Proposed $1.5 Million Placement.MONTREAL -- Golden Tag Resources Ltd. (the "Company") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:GOG) announced today that it is arranging a non-brokered private placement of up to $1.5 million. The placement will consist ofa first tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. of up to 1,400,000 "flow-through" common shares at a price of $0.18 per share for gross proceeds to the Company of $252,000. The second tranche of the private placement will consist of up to 8,320,000 units offered on a non-flow-through basis, at a price of $0.15 per unit for gross proceeds to Golden Tag of $1,248,000. Each unit is comprised of one common share and one common share purchase warrant entitling its holder to acquire one common share of the Company for a consideration of $0.20 at any time for a period of 24 months from the date of issuance of the units. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Company from the flow-through tranche of this private placement will be used for exploration expenses on the Company's properties in Canada. The net proceeds to the Company from the non-flow-through tranche of this private placement will be used for expenses related to the Company's projects in Mexico and for general corporate purposes. It is expected that the common shares will be sold to "accredited investors Accredited Investor A term used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings. Also known as "qualified purchaser". " on a prospectus-exempt basis. Closing of the "flow-through" common share portion of the placement is expected to occur on or before December 30, 2005. The private placement is subject to regulatory approval, including that of the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . The Common shares issued in the private placement will be subject to a four-month hold period under the policies of the TSX Venture Exchange and applicable securities legislation. Golden Tag currently holds an option on the Aquilon property, a prospective gold project in the James Bay James Bay, shallow southern arm of Hudson Bay, c.300 mi (480 km) long and 140 mi (230 km) wide, E central Canada, in Nunavut Territory between Ont. and Que. Numerous rivers flow into the bay; many of these have been developed for hydroelectric power in Quebec (see area of Northern Quebec, and has recently acquired an option to earn a 50% interest in the San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. property, Durango State, Mexico. The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this release. Golden Tag Resources Limited (TSX VENTURE:GOG) |
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